According to CryptoQuant CEO Ki Young Ju, Bitcoin has successfully navigated through fear, uncertainty, and doubt (FUD) this year, despite significant selling pressure from events such as Mt. Gox Bitcoin sales and the auction of confiscated BTC by the German government.
The German government seized almost 50,000 Bitcoin worth $2 billion from a suspect involved in alleged commercial money laundering and copyright infringement. This sparked concerns about the impact on BTC's price when the government decided to auction off the confiscated Bitcoin.
A similar situation arose with Mt. Gox, where customers were expected to sell some of their Bitcoin after the announcement of repaying roughly $9 billion worth of BTC to thousands of customers.
CryptoQuant CEO highlighted the market's ability to absorb this selling pressure, referring to the "scary size of Bitcoin sell-side liquidity from Mt. Gox." Despite initial fears, Bitcoin emerged victorious over FUD this year, with minimal impact on the market.
Bitcoin Sees Strong September Performance Amid Global Interest-Rate Cuts
Bitcoin is on track for one of its best September gains, supported by a wave of interest-rate cuts from central banks around the world, including the U.S. Federal Reserve. The largest digital asset has surged nearly 11% this month, outperforming its historical September losses.
The Federal Reserve, the European Central Bank, and the People's Bank of China all cut borrowing costs in September to stimulate economic growth. Bitcoin's price currently stands at $65,434, up 1.76% in the last 24 hours and 4.39% weekly.
Despite a 56% increase in 2024, Bitcoin is still below its March record of $73,798. The influx of funds into U.S. Bitcoin exchange-traded funds has contributed to its strong performance this year.
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Analysis:
Bitcoin has shown resilience in the face of selling pressure from Mt. Gox and the German government, proving its ability to overcome fear, uncertainty, and doubt. The cryptocurrency's strong performance in September, fueled by global interest-rate cuts, highlights its potential as a valuable asset for investors. With central banks implementing stimulus measures, Bitcoin's upward trajectory could continue, providing opportunities for growth and investment in the digital asset space.